By Taylor Fox
New York, Dec. 10 – Morgan Stanley Finance LLC priced $1.62 million of contingent income autocallable securities due Dec. 8, 2022 linked to the worst performing of the common stocks of American Airlines Group Inc., Delta Air Lines, Inc. and United Airlines Holdings, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes pay a contingent quarterly coupon at an annual rate of 21.75% if the shares of all stocks close at or above their 50% downside threshold levels on the observation date for that period.
The notes will be called at par plus the contingent coupon if each stock closes at or above its initial price on any quarterly determination date after one year.
The payout at maturity will be par plus any coupons due unless any stock finishes below its 50% downside threshold level, in which case investors will lose 1% for each 1% decline from the initial price for the worst performer.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
|
| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying stocks: | American Airlines Group Inc., Delta Air Lines, Inc. and United Airlines Holdings, Inc.
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| Amount: | $1,615,000
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| Maturity: | Dec. 8, 2022
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| Coupon: | 21.75% per year, payable quarterly if least-performing stock closes at or above 65% coupon barrier on observation date for that period; previously unpaid coupons will also be paid
|
| Price: | Par
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| Payout at maturity: | If least-performing stock’s final share price is greater than or equal to downside threshold level, par plus any coupon due; otherwise, 1% loss for every 1% that least-performing stock’s final share price is less than initial share price
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| Call: | At par plus contingent coupon if each stock closes at or above initial share price on any quarterly determination date after one year
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| Initial share prices: | $16.40 for American Airlines, $42.36 for Delta and $49.24 for United
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| Downside thresholds: | $8.20 for American Airlines, $21.18 for Delta and $24.62 for United, 50% of initial levels
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| Pricing date: | Dec. 7
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| Settlement date: | Dec. 9
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.25%
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| Cusip: | 61771ESS8
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